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Ireland Tax System Guide
Everything you need to know about taxation in Ireland — corporate rates, individual brackets, VAT, withholding, and key incentives for multinationals.
Corporate Tax Rate
12.5% / 15%
VAT Rate
23% standard rate
Capital Gains Tax
33%
Corporate Tax
The standard corporate tax rate is 12.5% on trading income and 25% on non-trading (passive) income. Ireland has agreed to the OECD Pillar Two global minimum tax, applying a 15% effective rate to large multinational groups with global revenue above €750 million. A 6.25% rate applies to qualifying income from the Knowledge Development Box (KDB). Capital gains are taxed at 33%.
Individual Income Tax Brackets
| Income Range (€) | Rate |
|---|---|
| €0 — €42,000 | 20% |
| €42,001+ | 40% |
Capital Gains Tax
Capital gains tax (CGT) is levied at 33% on gains from the disposal of assets. A personal exemption of €1,270 per year applies. Entrepreneur relief provides a reduced 10% CGT rate on qualifying business asset disposals up to a €1 million lifetime limit. Principal private residence relief exempts gains on your main home. Certain share disposals in qualifying companies may benefit from participation exemption.
Value Added Tax (VAT)
The standard VAT rate is 23%. Reduced rates include 13.5% (tourism, hospitality, hairdressing, certain fuels), 9% (newspapers, e-publications, sports facilities), and 0% (most food, children's clothing, oral medicines, books). The flat-rate scheme for farmers applies at 4.8%. The VAT registration threshold is €80,000 for goods and €40,000 for services.
Social Security — 4% employee (PRSI) / 11.05% employer
Pay Related Social Insurance (PRSI) for employees (Class A): employee contributes 4% on all earnings with no ceiling. Employer contributes 11.05% (8.8% on weekly earnings up to €441). Universal Social Charge (USC) is an additional tax on gross income: 0.5% on first €12,012, 2% on next €13,748, 4% on next €44,284, and 8% above €70,044. Self-employed pay 4% PRSI (Class S) plus USC.
Withholding Tax Rates
Dividends
25% (reduced by treaty)
Interest
20% (reduced by treaty)
Royalties
20% (reduced by treaty)
Filing Deadline
October 31 (paper) / November mid-November (ROS e-filing)
Why Businesses Choose Ireland
- 12.5% corporate tax rate on trading income is among the lowest in the OECD
- Knowledge Development Box (KDB) offers 6.25% on qualifying IP income
- Extensive R&D tax credit of 30% on qualifying expenditure
- Two-rate individual income tax system (20% and 40%) is simple but steep
- Universal Social Charge (USC) adds 0.5-8% on top of income tax and PRSI
- Special Assignee Relief Programme (SARP) for inbound employees
- Foreign Earnings Deduction for employees working in developing countries
- Ireland is a major EU hub for multinationals due to favorable corporate regime and EU membership
Rates and thresholds last verified: 2025-01. Always confirm with Revenue Commissioners (Revenue) for the most current information.